Core Insights - TSMC has confirmed a price increase for advanced process foundry services starting from September, marking a continuous increase for four years, driven by global changes and the booming AI sector [1][2] - The price hike is expected to trigger a wave of chip price increases across the industry, as evidenced by MediaTek's announcement of raising chip prices due to rising costs [1] - TSMC's strategy includes focusing resources on advanced processes (5nm and below) while potentially reducing capacity for mature processes (7nm and above) to reallocate manufacturing resources [1][2] Group 1: Price Increase and Market Position - TSMC's price increase reflects its strong commitment to AI, servers, and high-performance computing applications, prioritizing the supply of the most advanced nodes [2] - TSMC's recent financial results show record high revenue and profit, with a global foundry market share of 70.2% in Q2, significantly surpassing Samsung, enhancing its pricing power [2] Group 2: Impact on Supply Chain and Customers - The price and capacity strategy changes present challenges for downstream customers, particularly those relying heavily on advanced process chips, who may need to adjust supply chain strategies or increase prices [2] - Companies dependent on mature nodes may face pressure to secure orders due to reduced capacity, while the price increase strategy could have long-term effects on consumer electronics, market competition, and technology update cycles [2]